How to participate in an auction trade on Zerodha

Tue, 12 May 2026 00:00:00 +0000

An auction trade on NSE and BSE is a close-out mechanism triggered when a seller in the equity cash segment fails to deliver shares on the settlement due date (T+1 under the current T+1 settlement cycle). The exchange conducts a buy-in auction, where other market participants can offer the undelivered shares at a premium price, and the defaulting seller bears the penalty. Retail investors on Zerodha can be affected by auction trades in two main ways: as a buyer whose shares were not delivered (the aggrieved party), or as a holder of shares who chooses to participate in the auction by offering their shares at the auction price. The auction market reference article provides the conceptual background; this guide covers the practical steps.

Close-Out Auction on WebNotes

How to participate in an auction trade on Zerodha